Sunday Updates: DIS (Issue #5)
Recent Update:
The Walt Disney Company (NYSE: DIS — $200 billion) From a qualitative standpoint Disney is one of the strongest streaming companies. They have a global footprint that is consistently growing between Disney+, Hulu, ESPN+, Disney+ Hotstar, Hotstar, and Star as their main services. Between these services they operate in 60 different countries.
One of Disney+ best executions has been with the Star Wars franchise. They have made multiple new spin off TV shows that have been cores of the service. This has been a strong strategic decision because they used a proven popular setting and used lesser-known actors for the most part to avoid high legacy fees.
Disney will be investing more into content than any other company in 2022 at $32b. Followed by Warner Brothers Discovery and Netflix with $20b and $18b (respectively).
On the more negative side of the business 65% of subscribers of Disney+ subscribe for movies only. Movies are far less sticky content compared to TV shows or sports because subscribers don’t return to watch the same movie as often as they do for TV shows or sports.
Separately 62% of Disney+ subscribers are over 18 with no kids. This demonstrates positive execution in the sense that Disney has been able to move away from the kids content label. Conversely this also shows that money could be being left on the table by not fully reaping the rewards of Disney’s formidable kids library.
Disney will continue to evolve as a streaming company and the evolution will be the deciding factor of their success. However, Disney has come fast out of the gate and is not a streaming company to be underestimated.
Content News:
June 12 there will be an auction for the Indian Premier League Cricket rights until 2027. The sport had 600 million viewers in India last year. Starting bid is $4.4b.
The Orville: New Horizons is now available on Netflix
That’s My Time with David Letterman will be on Netflix on June 7
Tweets Of The Week:
Not exactly of the week, but still interesting:
Until Next Time,
Soren